new build/New construction

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New Construction

For new construction projects

  • Builders Risk Insurance (also known as Course of Construction Insurance) is a specialized type of property insurance that covers a new construction project during the building phase. It protects against damage or loss due to events like fire, theft, vandalism, and certain weather events.

  • Builders Risk Insurance is typically purchased by:

    • Property owners

    • General contractors

    • Builders or developers

    • Project managers

    • Sometimes lenders may require it before financing begins

  • It generally covers:

    • Building materials and supplies (on-site, in transit, or temporarily stored off-site)

    • Temporary structures (scaffolding, fencing, etc.)

    • Equipment used in the construction

    • Soft costs (e.g., interest, legal fees, architect fees – if added as endorsements)

    • Fire, theft, vandalism, lightning, wind, hail, and some types of water damage

  • Typical exclusions include:

    • Employee theft

    • Tools and equipment of contractors

    • Wear and tear or poor workmanship

    • Earthquake and flood (unless added via endorsement)

    • Liability for injuries (this requires a separate general liability policy)

  • Coverage usually lasts for the duration of the construction project, commonly 3, 6, 9, or 12 months. It can be extended if the project is delayed.

  • It should be in place before any construction materials are delivered or work begins. Most insurers will not backdate coverage.

  • The policy limit is typically based on the total completed value of the construction project, including labor, materials, overhead, and profit.

  • We currently operate in Ohio, Kentucky, Tennessee, Pennsylvania, Michigan, Indiana, Illinois, Minnesota, Mississippi, Missouri, Arizona, Arkansas, Georgia, North Carolina, and Texas

FAQs

  • No, subcontractors should have their own insurance. Builders Risk covers the structure and materials, not liability or workers.

  • Yes, but the policy details may vary. For remodels, especially if the structure is already existing, coverage can be more complex and may involve different policy types.

  • Yes. Builders Risk covers property; it does not cover injuries or damage to third parties. You’ll need general liability insurance for that.

  • You can request a policy extension, but it must be done before the policy expires. Additional premiums may apply.

  • Not usually by law, but lenders almost always require it for financed construction projects.

  • Typically, the owner or general contractor is the named insured. Additional insureds may include lenders, architects, or subcontractors, depending on project structure.

  • Yes, but you must ensure your policy includes endorsements for transit coverage and off-site storage.

  • You’ll typically need to provide:

    • Project address

    • Construction type and scope

    • Estimated timeline

    • Total project value

    • Security measures on-site

    • Names of involved parties (owner, builder, GC)